If online grocery delivery company Instacart decides to go public this year, it could be one of the biggest IPOs in 2021, Forbes reports. Right now, there isn't any information on the Instacart IPO release date.
All indications point to Instacart going public this year, but it might not take the traditional IPO route. In March, Reuters reported that the company was considering going public through a direct listing instead of an IPO. A direct listing is a less expensive option where investors and employees sell their existing stocks to the public instead of offering new shares in an IPO.
Instacart is valued at $39 billion.
Instacart’s most recent valuation put the company's worth at $39 billion after raising $265 million in a financing round led by existing investors. The existing investors include Andreessen Horowitz, Sequoia Capital, D1 Capital Partners, Fidelity Management & Research Company LLC, and T. Rowe Price Associates, Inc.
Instacart executives plan to use the new capital to increase employees and invest in its Marketplace, Advertising, and Enterprise areas.
Instacart flourished in 2020.
Business boomed for Instacart during 2020 as people quarantined at home amid the COVID-19 pandemic. People started ordering their groceries online. Over 750,000 shoppers used the app last year to order their groceries and either picked them up or had them delivered. That’s a far cry from 2014 when only 5,000 people used the service.
“This past year ushered in a new normal, changing the way people shop for groceries and goods,” said Instacart CFO Nick Giovanni in a statement.
Instacart partners with about 600 national, regional, and local retailers in over 5,500 cities across North America.
Instacart appoints Facebook’s Fidji Simo as CEO.
Recently, Instacart announced that long-time Facebook executive Fidji Simo is coming on board as the company’s new CEO. The move might also be an indication of Instacart's move to be a publicly traded company.
Simo, who has been on the Instacart board since January, was part of the Facebook executive team when that company went public in 2012. Instacart founder and former CEO Apoorva Mehta mentioned Simo’s experience in taking a company public in a statement about her appointment as CEO.
"Seven months ago, I invited Fidji to join Instacart's Board, and, since then, I've been blown away by her capabilities as a leader. Over the last decade at Facebook, she's been a part of every big moment in the company's history, including helping it grow from 1,000 to nearly 100,000 people and leading the world's most popular app,” Mehta said in a statement.
“Fidji was also at Facebook during its transition from a private company to the public market and understands what it takes to lead and scale a transformational company like Instacart,” he said.
How to buy Instacart stock
It might be a while before you can buy stock in Instacart. Whether the company decides to go public through an IPO or direct listing, it will still need to file the necessary paperwork with the SEC. The SEC will need to review the filings and make them public before you can buy shares.